Equivalence of the core and competitive equilibrium in a Tiebout economy with crowding types
Article Abstract:
A model of a local public goods economy with differentiated crowding is developed. This framework includes public goods and differentiated crowding where decentralization of the core does not involve prices that are influenced by agent preferences. Unlike earlier differentiated crowding models, this new framework distinguishes between two individual sets of agent crowding characteristics and tastes. It is shown that the core is equivalent to the set of Tiebout equilibrium outcomes when the economy achieves strict small group effectiveness. The description of equilibrium prices as relying only on crowding characteristics suggests that only publicly observable information is required to compel agents to categorize themselves into efficient jurisdictions. This complies with Bewley's (1981) anonymity requirement on taxes.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1997
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Coexistence and segregation of two groups in a metropolitan area through externalities
Article Abstract:
The author presents a new research model in studying the segregation and coexistence of various groups of residents, such as the rich and the poor, in the metropolitan areas of the United States. This new approach incorporates Miyao's neighborhood externalities model into the classic Alonso-Mills-Muth model. The economic relationship between the two groups is analyzed in this paper using the new model.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1991
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